Eternal Bliss Awaits You….Just Buy An Extended Warranty!

Extended warranties apply to automobiles as well as other consumer products. They are normally not worth their cost. In fact, these “Extended Warranties” are not warranties at all. They are more properly called service contracts. These agreements are usually sold by car dealers for $1,000 to $3,000 with a new vehicle. Through a service contract, you pay an independent warranty company, an administrator, up front to pay for repairs for covered problems with your car in the future.

A car dealer will try and pressure you into paying for a service contract by suggesting that repairs will come up after the warranty expires and you’ll save money by buying this contract. A service contracts are usually a huge source of income for the car dealer. Typically 50 percent of the money goes straight into their pockets. The reason for this is that the coverage is usually not at all what you expect.

Most have exceptions or exclusions such as the following:

Are you lacking, vehicle maintenance records? If you fail to produce records proving that the regular maintenance schedule was followed your in trouble. Not just maintaining the vehicle, but proving that the vehicle was maintained. Without proof you’re not covered.

Consider wear and tear parts. Things like brake pads, shoes, hoses, even shock absorbers are considered items that normally wear out and are usually not covered. Anything they can be considered normal wear and tear is generally not part of the contract.

Breakage of a noncovered part. Damage caused by non-covered parts are not included in your contract coverage even if they do cover items that are under contract. For example hoses are not covered by the contract, so if a hose breaks and causes major engine damage it won’t be covered even if major engine failure IS covered.

“Investigative surgery” like you leave your contract is not going to cover “exploratory surgery” on your car to find out the problem is, unless the problem turns out to be covered. This sometimes means you’re going to pay part of the repair costs upfront before the garage even starts to investigate the problem.

Limited repair options. You may have a hard time getting repairs on your vehicle, because the service contract limits where you can have the repairs done. The agreements sometimes severely limit who can work on your car by restricting the repairs to a certain number of places. On top of that, some service contract providers have a bad reputation in the service center won’t even honor the contract. They’ll ask you to pay for the repairs, and you have to try and get reimbursed for yourself.

Considering all these problems, chances of you actually receiving any peace of mind by using a service contract are slim. Unless of course you never actually need the contract, which is the most likely scenario. Considering the way cars are being made these days chances of you needing major repairs are pretty slim. In most situations the profits are just going into the company’s pocket and you’ll just be throwing a money away by purchasing an extended warranty.

The Lastest posts in Insurance

Is Affordable Health Insurance just a Myth?
The cost of health care in the U.S. has gotten completely out of hand. The avera...
http://www.bizarticlezone.com/finance/insurance/is-affordable-health-insurance-just-a-myth-1012/

Certifide Lawyers For Social Security Disability Denial
Your attorney will play an important role in any type of legal proceedings and i...
http://www.bizarticlezone.com/finance/insurance/certifide-lawyers-for-social-security-disability-denial-978/

Visitor Health Insurance: 5 Important Items Too Examine
A visitor's health insurance policy helps take the worry out of traveling abroad...
http://www.bizarticlezone.com/finance/insurance/visitor-health-insurance-5-important-items-too-examine-942/

Affordable Individual Health Insurance Low Cost Health Care
Affordable health care is becoming a concern to many Americans nowadays. Many co...
http://www.bizarticlezone.com/finance/insurance/affordable-individual-health-insurance-low-cost-health-care-929/

Six Things You Need to Know about Ltci and Maximum Policy Value
When you get a long term care insurance quote you need to consider the maximum p...
http://www.bizarticlezone.com/finance/insurance/six-things-you-need-to-know-about-ltci-and-maximum-policy-value-927/

When Trying To Get Cheap Auto Insurance Is Extra PIP Needed?
What's Extra PIP coverage? When you are trying to get cheap auto insurance do y...
http://www.bizarticlezone.com/finance/insurance/when-trying-to-get-cheap-auto-insurance-is-extra-pip-needed-866/

Beginners Guide To Submitting An Insurance Claim
If youave never before submitted a car insurance claim, consider yourself very l...
http://www.bizarticlezone.com/finance/insurance/beginners-guide-to-submitting-an-insurance-claim-861/

A Big Expense Made Less Painful
A vacation can be a big expense. To cancel a vacation can be an even bigger expe...
http://www.bizarticlezone.com/finance/insurance/a-big-expense-made-less-painful-727/

Some information on AAA Auto Insurance
The American Automobile Association, better known as the AAA, is extremely well-...
http://www.bizarticlezone.com/finance/insurance/some-information-on-aaa-auto-insurance-725/

Is Term Insurance Better or Wholelife Better?
Some are confused about the difference between term insurance and what is called...
http://www.bizarticlezone.com/finance/insurance/is-term-insurance-better-or-wholelife-better-708/